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Incentives and subsidies

Incentives and subsidies

For the past 15 years, the hundreds of thousands of employees who have completed a CTR survey have consistently answered that financial incentives were the single most important thing their employer could offer to motivate them to consider a change in commute behavior.

Financial incentives generally fall into two categories:

  1. Subsidies
  2. Incentives

Subsidies are a financial benefit the employer provides on a regular basis, to individual employees – or employees who commute together - that directly lowers their costs of commuting. Examples include:

  • Provide (free to employee) a transit or vanpool pass or ticketbook
  • Share the cost of (with employees) a transit or vanpool pass or ticketbook
  • Allow employees to use pre-tax income to purchase transit or vanpool passes or to purchase HOV parking
  • Give discounted or free parking to carpools and vanpools
  • Give vouchers or cash to carpoolers, bicyclists and walkers

Incentives are an expectation of employer-provided reward that motivates employees to a specific action or effort. Examples include:

  • Prize Drawings
  • Opportunity to earn a paid day off or free lunch for using commute alternative
  • Carpool/vanpool formation bonus
  • "Try it you’ll like it" prize
  • Bicycle commute mileage prize

 

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